Is it a good idea to invest in the shares of SBI?

 Is it a good idea to invest in the shares of SBI?

Is it good to buy SBI shares right now?

Is it good to buy SBI shares right now ? :

On Diwali day Moorat Trading, SBI share price dropped to a low of Rs. 241.15.

That was on October 19, 2017.

Five days later, Finance Minister made an announcement regarding recapitalization of public sector banks.

Next day, the stock price zoomed to a high of Rs. 328.05 and on October 26, the high price was 351.30 before it gave up all the gains and closed the day at Rs. 318.30.

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More than a month later, the closing price on December 08 was Rs. 313.20.

Is it a good buy at present price ?

Let us look at the history of the stock.

Here is the 10 year chart:

Chart Source : Fyers.in

The current price is very near to the all time high.

Is that good enough to buy?

The past tells us that on two earlier occasions in year 2010 and 2014, the stock price retraced from these levels and fell sharply to near 160 levels.

Though it is not necessary that history will always repeat itself, but the record certainly does not inspire any confidence about an up move.

Let us have a look at the past.

December 2010 :

NIFTY was at 5960.90 on December 01, 2010 and at 6134.50 on December 31, 2010.

The price movement of SBI stock is shown here:

While the NIFTY was up slightly for the month, SBI stock price fell from Rs. 3100.15 to Rs. 2796.55.

For current comparison, these values are to be considered as Rs. 310.00 and Rs. 279.65.

We move forward by 4 years.

December 2014 :

The UPA government lost the elections. Mr. Narendra Modi became the Prime Minister in May 2014.

Markets had picked up momentum.

NIFTY was at 8555.90 on December 01, 2014 and ended the year at 8282.70 on December 31, 2014.

The price movement of SBI in this month was:

It was Rs. 319.50 on December 01 and Rs. 312.75 on December 31, 2014.

Does it ring a bell ?

In the beginning of this answer, I have written that price yesterday ( December 08, 2017 ) was Rs. 313.20.

In three years the share price remains where it was.

The NIFTY index has moved from 8282.70 on December 31, 2010 to 10265.65 on December 08, 2017.

December 2017 :

Very Poor Performance :

NIFTY index has moved up from 5960 to 10265 in 7 years.

It is a gain of 72.2%.

Though not spectacular, it is still a decent gain.

SBI stock is at same levels where it was in 2010 and 2014.

Long term investors did not get a single Rupee of value appreciation though they certainly received some dividends.

But people do not remain invested for just dividends.

Is it Worth Buying Now ? :

The bank is burdened with lot of NPA issues.

There are noises from time to time regarding action being taken to address this issue, but results are not forthcoming.

There are many loans which are classified as STANDARD presently but may become NPAs in few years time. The loans given to Infrastructure sector are likely to become the big drag on the balance sheets.

The environment is competitive and there is dearth of good borrowers.

The additional capital promised by the Finance Minister will only fulfill the RBI norms regarding capital adequacy, it will not suddenly transform a bad business into a good business.

Rather there is a chance that the government may extract its pound of flesh by way of loan waivers to specific sectors which will further stretch the balance sheet of the bank.

In my view, SBI stock as an investment should be avoided.

It may go up a little bit with the general market sentiment but ultimately the business results matter and the price is bound to come down.

It has not given any returns over last seven years in a rising market, why things would be different now?

Disclaimer :

These are my views based on the past performance and not an investment advice.

Thanks for reading.

Images : NSE web site

when it comes to SBI , I become impulsive . Be it opening a bank account in SBI or be it investing in shares of SBI , this bank has won everyone’s trust and support .

According to me it is a really reliable and good idea to invest in SBI.

WHY?

Because i find this firm fundamentally strong , particularly in Banking sector of India .

And there are reasons behind my this perception .

Let’s take an over view of current status of the firm co-ordinates :

Key Ratios:

Shareholding patterns:

Graph showing , status of SBI Shares in last 5 years :

Here are few more facts (derived out of deep analysis) that you sh

Is it right time to invest in SBI shares?

The current share price of SBI stock.

SBI stock has taken a significant beating after attaining a 52 week high of Rs 373.70. The 52-week low for SBi stocks was Rs 173.60 few months back.

The consolidation of SBI stock price has already been happening but it will still take a while to completely consolidate

SBI stick is considered to be a slow mover. (Do remember that slow and steady wins the race).

In my point of view, the people who are willing to invest in State Bank of India's (SBI) shares should buy the stock in small quantities

Ideal levels for buying SBI shares is between Rs 185 - Rs 190 for

What will be the SBI share price after 10 years?

Is it good to buy SBI shares right now?

How much would be SBI share price after 5 years from now? Is it good to buy SBI share now and hold for 5 years as investment?

Is it a good idea to invest in an SBI card IPO? Can an SBI IPO give good returns?

SBI Cards IPO: long thread on valuation disasters in Indian markets & how these rip off the retail investors: Let’s start with basic statistics first:

13 crore shares being offered our of total of 93 crore stocks. 14% float at Rs 750 per share gives a valuation of Rs 70 thousand crore to the credit card company. This US $ 10 Billion market cap. They say this is the only card company getting listed so a great opportunity. We’ll see some numbers & benchmarks internationally.

At FY 19 profits of Rs 862 crore & EPS of Rs 9.43, we get a Price Earning ratio of 80 !! I know many will jump citing the gr

Is it right time to invest in SBI shares?

SBI stock is considered to be a low mover.

And it is currently trading near its multi year support zone, where it as bounced back up whenever it reaches 150 levels. The consolidation of SBI stock price has already been happening but it will take a while to complete consolidate. It looks like SBI can break this multi year support zone very soon.

The trend is clearly down, do not catch a falling knife, it really hurts. Better to stay away from SBI stock for now, if it bounce back from this level, consider investing, if it breaks the current levels, then you should be in wait and watch mode.

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Is SBI stock worth buying?

Disclaimer: As a matter of personal policy I don’t provide stock recommendations for buy/sell/hold as I don’t intend to be held liable for any losses that anyone may incur incase of a reversal of the stock price and heading downward.

With the above disclaimer on my mind, the best information I can provide is the facts, trends, stock price impacting news and other such information which maybe of importance to the stock price but might not necessarily result in an uptrend.

The current price is around Rs. 252.00 with good volumes of 15.5 million shares on NSE & BSE combined, just 7% lower than its

Yes, SBI is leading bank in Public banks. Being a old bank many investors are bullish on these stock. But studying SBI financial model we get to know that

Sales are average even return of equity is average. Excellent profit has given rise to demand.

Demand and supply are important in market. In SBI case demand is excellent but seeing it's sales Company should pay attention to their sales and return on equity.

Not constant upside is seen many up and down has seen in SBI Share prices in past. It is true that history repeats itself so we need to pay attention to it.

But these bank has good future and